Deliveroo deal shows UK still can't hang on to big firms
Summary
The U.S. food delivery service DoorDash is purchasing UK-based Deliveroo, reflecting a growing trend of UK companies being bought by U.S. counterparts. The value of the two companies has varied greatly over the past few years, with DoorDash outperforming Deliveroo, ultimately enabling DoorDash to make the purchase.Key Facts
- U.S. based food delivery company, DoorDash, is buying UK-based Deliveroo.
- DoorDash values Deliveroo at £2.9bn (about $3.8bn).
- DoorDash is currently worth 35 times more than Deliveroo.
- Four years ago, DoorDash was only worth five times more than Deliveroo.
- An investor who bought a share of DoorDash has seen its value increase by 84%.
- An investor who bought a share of Deliveroo has seen its value decrease by 56%.
- Deliveroo is being acquired by DoorDash as it has become profitable.
- UK companies are increasingly choosing U.S. listings over London's stock market because of higher valuation in the U.S.
- The 500 largest publicly traded U.S. companies are worth, on average, 28 times their annual profit, while the 100 largest UK companies only sell for 12 times their yearly profit.
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